E-mini S&P range-bound near 2012 highs

Brooks Price Action - 01-16-2013 Wednesday

Higher low major trend reversal, broad bull channel

Wednesday, January 16, 2013

Bar 1 - Yesterday ended with buy climax so big pullback on open makes sense. Small bear bar, big tails, buyers below, sellers above. Pink line 146950 corresponds to about cash index high of last year = 5 year high

Bar 4 - Bull outside bar surrounded by inside bars, room to moving average, probably ok scalp. Not strong candidate for low of the day. Might get rally to lower high major trend reversal and nested head and shoulders top for test down to gap of 3 weeks ago. Entire 2013 rally looks like trading range, not trend, so might test bottom

Bar 7 - Follow through from bull breakout but only 2t body so not strong

Bar 10 - Three inside bars in a row weak bull leg so probably trading range and possible final flag. An institution just breakout test or bought 10,000 calls so more up likely

Bar 13 - Two bar revresal, final flag, wedge 1 7, but 10 bar bull microchannel so probably buyers below = buy or long pullback. Lower high major trend reversal but lp and better to wait for second entry sell. Trend from the first bar bull so should be buyers below 12

Bar 18 - Bear breakout so should fail, failure and be buyers on close. Still trend from the first bar bull and always in long

Bar 21 - 3 bars with close on high, more up. Might go for cash 5 year high = pink line above

Bar 25 - Inside bar, one legged pullback in a bull move, ok buy or long but doji and bear bar so might get pullback. Wedge 1 12 but 5 bars up so wait for second entry sell. Two inside bars, big two legged pullback in a bear move 12, 17t fail, failure 4, but always in long

Bar 27 - One legged pullback in a bull move but tight trading range and hoyrs so probably better to wait or use wide stop and trade small to allow for more pullback

Bar 28 - Second entry sell but doji and tight trading range so lp. Wait. Bears can sell or short as second entry sell top of trading range but probably better to wait since not strong